• Feb
  • 23
  • 2010

ESIC approves enhancement of wage ceiling from 10,000 to 15,000

Posted In Finance | | 76 Comments »

The ESI Corporation has approved to enhance wage ceiling from Rs 10,000 per month to Rs15,000 per month for coverage of employees under the ESI Scheme in its 149th meeting held on Friday under the chairmanship of Union Minister of Labour and Employment Mallikarjun Kharge.

Union Minister of State for Labour and Employment Harish Rawat and the vice-chairman, ESIC, were also present in the meeting.

Keeping in view the increase in cost of living index and recommendations of the Parliamentary Standing Committee on Labour, the corporation increased the wage ceiling limit for coverage of the employees under the ESI Scheme.

This will help the corporation to provide social security net to more and more employees of the organised sector.

Sandeep Kanoi

76 Responses to “ESIC approves enhancement of wage ceiling from 10,000 to 15,000”

  1. sudhir says:

    dear sir,
    please help
    my basic salary is 3000/- and gross salary is 4700/- so want is esic & pf amount dedect on my salary & how many amount company pay.
    also info me what is minimum amount of Esic & what is maximum amount

  2. sivamani says:

    in the of month September one employee salary 13000 next month increase his salary 17000 , in the case esi deducted or not for the month October? if deducted who much amount?

  3. Varghese Philip says:

    Government should increase the Ceiling Limit of ESIC upto Rs.50000/- instead of upto Rs.25000/-. Huge additional amount can be earned by the Government. Reason being the cost of Hospital equipments and salary of staffs have tremendously increased. Ceiling Limit of Rs.25,000/- will not serve any purpose of Government for maintaining the ESIC scheme and related ESIC hospital.

  4. Niranjan says:

    Hi friends,

    Its Clear that, whose gross salary is less than 15001pm (180001 PA), they will pay for ESIC.
    If any persons may get below 15000 due to Deductions like (loss of pay, insurance etc.,.) and they having gross salary more than 15000 in this situation they wont pay for ESIC.

    I think its clear.

  5. VISHAL says:

    DEAR , ALL

    I DONT WANT TO DEC MY ESIC IF COMPANY CAN STOP TO DEC MY ESIC MY SALRY IS 12000

  6. Abhishek mishra says:

    HI,

    My gross salary is 15999 and my take home salary 13450…

    Please tell me should deduct ESI amt in my salary or not…

  7. Uday says:

    Hi All,

    I wanted to know if my salary is 20,000/- pm but due to some reason I took leave for 15 days in that month I will be getting 10,000/- as my salary. In this month do I need to pay any ESI for that Month. Kindly let me know. My office people are saying that in any Month if your salary comes less then 15,000/- I need to pay ESI. Kindly Help this is little confusing…….

  8. Naresh Barik says:

    my CTC is 1.8lakhs,Gross is $14,244,Take Home is Rs 13900/-
    My company deducted ESI 6.5% from Salary,Is it right ?

    Plz Replay me .

  9. jyoti says:

    if an employee’s salary in June is 13000/- & in the July it is above 15000/-, should we deduct esic in the month of July 12 on 15000/-?

  10. RAVINDRA NATH says:

    bhai logo se requist hai ki agar 9 month complete  na ho to paise nahi milte kya please reply jarur karna iske alawa koi rasta ho to batana

  11. Lancy says:

    Dear All,

    As on date, in case your monthly salary is less than equal to Rs.15,000/- (excluding Over Time Allowance), then as an employee you are required to contribute only 1.75% of your net monthly salary and the balance 4.5% is to be contributed by your employer. The total contribution to your file is 6.5% of your net monthly salary. There is no way an employer to back-charge 4.5% of the ESIC contribution to an insured employee. ESIC Contribution on your salary slip should show as 1.75% of your net monthly salary (excluding Over Time Pay, if any).
    Regards,

  12. Usha Nair says:

    Minimum required members are not there in our organisation only 3 members are there recovery and Employers contribution totalling to 6.5% is deposited on the gross salary which of no use to the employees they are not able to find doctors registering themselves in their area and are against their will to contribute can we aply for excemption due to less no of employees. Replying this regard is expected. You should have advise each employer the revised 11 digit no on mail/letter which would avoid individually to attend your office personally. Hope so you can do something in this regard. Our account No is 52-8271-101

  13. Ravi says:

    This govt is simply eating our money,before it was ESI deduction only for who’s salary equal r less den 10,000, but now its increased upto 15,000, but what for is dis,Dey still have to eat our money der is no limitation for dis, der is no way to oppose dis

  14. ambika singh says:

    esic should publish statement of each i.p. mentioning the amount received by i.p. & benefit offered to him in terms of money, local office wise from where the i.p. is related, to make the esic more transparent.

  15. varsha m kadam says:

    As per discussion with ESIC people he told me that I am not eligible for the take a benefit from ESIC for leave and other benefits, because I am entered under ESIC from May 2010 . So, they told that I was not completed 9 month in ESIC.
    I wish to take maternity leave from date 20th Nov 2010. I would like to avail the entire maternity leave and benefits. Please guide me process of applying for the benefits.
    I hope you will consider my situation and allow me to take maternity leave with all benefits.
    Awaiting for your reply.
    Sincerely,

  16. varsha m kadam says:

    If Govt. increased ESI limit up to 15000/- which is not only totaly loss of medical benifit from company but also burdon. Why Govt not increasing the limit of EPF from 6500 to 15000/- it help the beneficery ( private Sector) for epf pension also.

  17. Amit Dutta says:

    My salary is 24,790 after deducting OF. I am working at accenture, noida. I just want to know whow i come under ESI deduction. I will be happy if this illigale deduction will stop fro today and I will get me money back.
    Or let me know/show the calcul;ation of the deduvtion.

  18. Rohit says:

    Could anyone tell me can the company deduct ESI amount of total 6.5% from a salary, instead of only 1.75%. Because my company is deducting both employee and employer share from my salary and it accounts to Rs.7500 monthly and 485.5 monthly. Please advise what can be done if company is unfair on the employees part.
    So, wthat i do of compnies against?
    i m doing work in axiombpmservices pvt ltd

  19. S.K. MATHPAL says:

    If Govt. increased ESI limit up to 15000/- which is not only totaly loss of medical benifit from company but also burdon. Why Govt not increasing the limit of EPF from 6500 to 15000/- it help the beneficery ( private Sector) for epf pension also.

    Regards,
    Mathpal

  20. DharmaRaj says:

    This Govt. Act is really a wrong move. These ministers still want to eat the employee’s money in the from of ESIC even though we contribute to the Income Tax department. As a salaried employee of Rs <15000 paying 250 everymonth and also professional tax, income tax and somany inderct tax).
    There is no limit for the greedness of the indian minister. They just eat the society by their taxes.
    Very bad move. Please decomission this Act. Govt. can do good with the inderct and direct taxes every employee paying monthly. Even the ministers salary will be arround 30K/month. Who much he is contributing to the society. Don't kill the citizens like this.

    I request all the effected salaried to rasie a gravience on this Act.

  21. Yogesh says:

    i agree with suresh, it is wrong with us.

  22. Ramesh says:

    Could anyone please tell me whether a company can deduct the ESI amount of total 6.5% from a salary, instead of 1.75%. I am having a salary of 12000/- but I am getting only 11220/- (ie 780/- less).I am working on contract basis.If this is illegal then what can I do against this?

  23. Suresh says:

    I HAD WORKED IN GUJARAT FOR 14 YEARS & NOW IN KERALA FOR LAST 12 YEARS. IN MY KNOWLEDGE, 90% OF EMPLOYEES NOT AVAILING THE BENEFIT BECAUSE OF THE INCONVENIENCE & POOR QUALITY OF HOSPITALS AS WELL AS FACILITY IS NOT AVAILABLE FREQUENTLY ACCORDING TO THE SITUATIONS WANTS. IF WE WILL INVEST THIS AMOUNT IN MEDICLAIM ETC. WE WILL GET MORE BENEFIT, BECAUSE THEY PROVIDE TREATMENT IN PRIVATE HOSPITALS ALSO. I THINK THIS IS ONLY AN INDIRECT INCOME SOURCE FOR GOVT. AD THEREFORE I STRONGLY OPPOSE TO THIS AMENDMENT.

    IF GOVT/CORPN. REALLY SINCERE IN SOCIAL WELFARE THEY HAVE TO FIRST ENHANCE THE FACILITY AND SIMPLYFY THE PROCEDURES AND INCLUDE RECOGNISED PRIVATE HOSPITALS IN EVERY TOWN/VILLAGE WITH GOOD FACILITY AT-LEAST X-RAY & PATHOLOGICAL LAB,
    OR
    OTHER WISE GIVE OPTION TO EMPLOYEES WHETHER THEY WILLING TO GET THE FACILITY OR NOT. BECAUSE IN MOST ESTABLISHMENTS THE EMPLOYEE IS ACCOUNTABLE FOR WHOLE 6.5% OF CONBN. AND THEY ARE LOOSING 6.5% OF THEIR SALARY AND NOT GETTING THE FACILITY.
    KINDLY CONSIDER THIS APPEAL.

  24. Arvind says:

    Could anyone tell me can the company deduct ESI amount of total 6.5% from a salary, instead of only 1.75%. Because my company is deducting both employee and employer share from my salary and it accounts to Rs.8340 yearly and 695 monthly. Please advise what can be done if company is unfair on the employees part

  25. Drugs says:

    The said ammendment will be effective from 1st May 2010, as per ESIC notification dated 20th April,2010.

  26. Alok Srivastava says:

    pl tell me Sir
    the limit of esic is depend on basic salary or gross

  27. Pramod says:

    This is such a bad news, It is just a deduction from salary, becasue no body wants to have their treatment from any ESI hospital because of thier staff attitude and services provided by them, On behalf of so many employees I request you to take back this scheme ASAP.

  28. Prakash says:

    The FM should also learn something from ESIC and increase basic exemption limit of 160,0000 by 50 % and make it 240,000

    PT limit should also be made 10,000 from 5000

  29. S.Ramaswamy says:

    Further, it is suggested that any amendment (increase) in one statute to ensure that limit of other correlating statues is also amended (increased ) like EPF, Bonus Act, Min wages Act, Income Tax Act, Prof Tax Act.

    As all these statutes are for social security, all statues to be amended concurrently with relevant provisions under the tax laws also being amended correspondingly.

    It is also suggested that can we have a single law instead of so many laws called as the Social Security laws like the Direct Tax Code and the GST (which comprises of all direct and indirect tax) under one basket.

  30. francis says:

    we do not know whatfor this enhancement.in the competitve world manufacturing cost increases through raw material cost,power tarrif,petrol hike alongwith this our small and medium scale manufacturers cannot absorb this unproductive esclation.they will no more competive with reference to srilanka,bangaladesh,indonatia,china and phillipinos.
    let the govt reconsider this.

  31. ashok jaiswal says:

    it not good news ,govt took in to this matter employes who ‘s detection in ctc
    more loose

  32. Jai says:

    I really accept “anil and puti” says. What Govt. doing is not provide any befit to employee instead of give there company to get more befit then the salaried person. Why I am saying because if see the ESI hospital in all over India it not well clean and if you gone for any treatment u have to wait for hours to see the doctor, and even if you see then they will not give good treatment also, this is very bad move from Govt. if they want to do good for employee increase the PF amount and Tax amount. I India reach people are become richer and low class going lower. This is a BAD move from GOVT>>.

  33. Roy K Daly says:

    Does the number of employees employed remain at 20 (twenty) or has this been reduced to 10 (ten)in the case of establishments (Not a factory)using LT power only

  34. Arun says:

    Government of India has issued final notification giving effect to wage ceiling increase from Rs.10000/ to Rs.15000/. It will become effective from 1st May 2010.

    Notification is dated 20th April 2010. The impact of this amendment in ESI Act is that now employees drawing upto Rs.15000/ will be covered under ESI.

  35. Jitender Singh says:

    ITo be published in the Gazette of India. Part Il, Section 3, Sub-Section (i)]
    GOVERNMENT OF INDIA
    MINISTRY OF LABOUR AND EMPLOYMENT
    New Delhi, th~~ril, 2010
    NOTIFICA TION
    G.S.R. (E)- The following draft rules further to amend the Employees’ State Insurance
    (Central) Rules, 1950 were published as required under sub-section(l) of section 95 of the
    Employees’ State Insurance Act, 1948 (34 of 1948) in the notification of the Government of Indian
    in the Ministry of Labour & Employment vide No. G.S.R.164(E), dated the 26th February, 2010, in
    the Gazette of India, Part Il, Section 3, Sub-section (i), dated 27th February, 2010 for inviting
    objections and suggestions from all persons likely to be affected thereby till the expiry of the
    period of thirty days from the date on which the copies of the Gazette of India in which the said
    notification was published, were made available to the public;
    And whereas the copies of the said Gazette were made available to the public on 27th
    February, 2010;
    And whereas, objections and suggestions received from persons likely to be affected
    thereby have been considered by the Government;
    Now, therefore, in exercise of powers conferred by section 95 of the Employees’ State
    Insurance Act, 1948, the Central Government, after consultation with Employees’ State Insurance
    Corporation, hereby makes the following rules further to amend the Employees’ State Insurance
    (Central) Rules, 1950, namely:-
    1. These Rules may be called the Employees’ State Insurance (Central) Amendment Rules,
    2010.
    2. These shall come into force from the l ” day of May, 2010.
    3. In the Employees’ State Insurance (Central) Rules, 1950, in Rule 50, for the words “ten
    thousand”, wherever they occur, the words “fifteen thousand” shall be substituted.
    [F. No. S-38025/04/2010 -SS-I]
    ~~
    S.D. XAVIER
    Under Secretary
    ~~_I.
    ,

  36. Jitender Singh says:

    New ESIC ceiling will be effective from 1st May, 2010. In this regards a circular has been circulated. Circular attached for reference.

    Rgds/Jitender

  37. Ashok says:

    Dear all,

    Notification already issued on 20th April 2010 as hike from 10000 to 15000.

  38. ASIM SAXENA says:

    Increase in ESI coverage is good but facility in ESI Hospitals needs to be improved.

    Further to this Income Tax Free limit should also be increased accordingly or
    Employee contribution towards ESI should be considered for income tax rebate.

  39. Kindly let me know the effective date so that we can implement thse same in our organisation.

  40. Sunil Sardana says:

    It has been notified on April 21, 2010 to be effective w.e.f. 01-05-2010

  41. Rakesh Ghadigaonkar says:

    Kindly provide the Effective Date for the New Limit.

  42. Mohit Aggarwal says:

    kindly, provide effective date for change in salary limit for ESIC coverage.

  43. gulshan sharma says:

    till date, the authorities have not made any notification to this effect. It is being heard that certain unions have opposed the move. Hence, it is advisable to maintain status quo till formal notification is received.

  44. vasumenon@yahoo,com says:

    pl. let us know about the effective date of esi amendment of enahncement of wages from 10,000/- to 15,000/-?

  45. anil says:

    some companies are giving sufficient medical benefit to their employees who are receiving more than 10000/- salary/wages. for such employees this is a bad news. after the implementation of revised limit medical benefits will be stopped immediately on the other side burden of contribution will increased on employees and even employers also.

  46. suneet agnihotri says:

    still not enforce.

  47. Sanjesh says:

    If anyone has the copy of notification pls share with us

  48. vasumenon@yahoo,com says:

    can any body confirm whether,esic has notified the new amendment, whereby wage limit of coverage has been enhanced from 10000/- to 15000/-?

  49. AN says:

    I m totlay satisfied with Puty.I think ,This is realy a bad news

  50. BUNTY SINGH says:

    kindly, provide effective date for change in salary limit for ESIC coverage.

  51. vasumenon@yahoo,com says:

    pl. let us know the effective/amnded date of enhancement of wage ceiling, so that the employers can take further steps for implementation of the same.

  52. Buland Akhtar says:

    IT WILL EFFECT FROM 1ST APRIL 2010

  53. puti says:

    it is one of the method to collect the public money without giving sufficient benefits to the workers, in fact the Government should first increase the ceiling of Employees provident fund and minimum wages of the workers,
    instead of increasing the wage limit, the ESI ought to have expanded the minimum base covering all employees even of the establishment of three employees, this would have benefited more than covering the higher wage bracket. in social security low income group is required the benefits and not the higher income group.
    Puti Gaonkar- Trade Unionist- Goa

  54. gupte says:

    Any notification issued to this effect pls provide us copy of the same.

  55. smita says:

    kindly, provide effective date for change in salary limit for ESIC coverage.

  56. sunil tripathi says:

    please say that what limt will be consider?

  57. sunil tripathi says:

    please say that when esi limit effective?

  58. Shivashankar says:

    Hi,
    let me know the Approx. date of implementation of celing of 10,000/-to 15,000
    and this is very bad, who enjoyed the benifit from the company.

  59. Sanjay Bisherwal says:

    Please let me know the date of effectiveness

  60. Ajay says:

    Let me know the date of effectiveness.

  61. Hema says:

    Before this bill is passed, can it be made effective by just the alone ESIC’s approval decision of raising.

  62. parveen goyal says:

    hi,

    let me know the date of effectiveness.

  63. prashant godse says:

    hi,

    dear sir,

    Please when it is going to be effective please let us know.

  64. prashant godse says:

    hi,
    dear sir,

    Please when it is going to be effective please let us know.

  65. priya says:

    So what about employees who are already drawing a sal of 14k but not covered under ESIC..does the organization have to revise their salaries for existing employees?

  66. vaibhav Korgaonkar. Executive HR says:

    Please let me know from which date this policy will be implemented.

  67. Ramesh Jamdhade says:

    This is great move towards the social secuirty scheme to the Labour and their families. what is the effective date for implementation.
    Ramesh Jamdhade- Sr Manager HR
    9970395615.

  68. Yogesh shah, Chartered Accountant says:

    The ESIC enhanced wage ceiling from Rs. 10000/- to Rs. 15000/- It will leads to get social security for more employees. But is not mentioned from which date it will be applicable. So in this regard clarification is required.

  69. c n suresh says:

    the date of effect of coverage under ESIC will be from the date of issue of notification by central government & it will be normally from prospective date.

  70. b.n. venkataramu says:

    welcome move to enchance the limit of ESI salary to 15000/-
    if they apply for same rule to
    EPF also as 15000/- it is ok
    and gratuity also from 350000/- to 700000/- and above
    it would be welcome move
    i hope concenred ministry will look into this
    regards
    venkataramu

  71. Prakash Sanguri says:

    It is a great news as well as social work done by the Govt.,
    But what is the date where from
    it will be applicable.

  72. Inderpal Singh Pasricha says:

    WHEN IT IS GOING TO BE EFFECTIVE
    PLEASE LET US KNOW

  73. CA Sandeep Kanoi says:

    They will notify the date with a separate notification

  74. surendrarathi says:

    effective from when?

  75. Tanveer Shekhawat says:

    thanx, lot for providing such updates. kindly, provide effective date for change in salary limit for ESIC coverage.

  76. Mahendra Furia says:

    From which date this is effective?

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